Though agriculture and rural development are classified as priority areas, public investment inthese sectors is still very low. According to the Public Investment Programme (PIP) 2010—12,the government planned to invest only 13 percent of the fund in agriculture. 6The government’s National Poverty Reduction Strategy (NPRS) 2003—05 recognizes the needto deepen and accelerate reforms and to focus limited resources on four pillars: agriculture andrural development, education, health, and infrastructure. Although both the government’s SEDPII and NPRS have identified general priorities for the rural sector, more work is needed todevelop concrete programs to revitalize the rural economy. To maximize impact, these plansneed to start with a clearer and more strategic articulation of priority actions that link reformsand investments to available resources, improve the focus on outcomes and results, andstrengthen the coordination among stakeholders. 7Rural infrastructure in <strong>Cambodia</strong> was developed gradually. The Ministry of Rural Developmentand other government agencies, in cooperation with the private sector, built roads, health centers,pagodas, and schools; dug water wells for drinking water, and provided education on primaryhealth care, among other interventions (see table 3.1).6 Public Investment Programme (PIP) 2010—2012.7 World Bank 2005.89
Table 3.1: Main Statistics for Rural DevelopmentRehabilitated roads (of total 28,000Unit 2008 2009 2010 2011 2012 2013km) km 24,140 25,658 26,658 27,658 28,658 29,658Access to improved drinking water(rural areas)% ofpop. 40.49 41.99 43.49 44.99 46.49 47.69Source: NSDP Update 2009—13.Water is a critical natural resource. The appropriate use and management of water are key forrural development and poverty reduction in five ways: (1) as a key input to agriculturalproduction to improve rural livelihoods, ensure food security, and promote better nutrition; (2)as the single most important source of hazard risk in the extremes of its availability (e.g.,droughts and floods); (3) when safe or potable (e.g., for drinking, sanitation, bathing, and otherdomestic uses), it reduces the risk of contracting water-borne diseases and, in turn, reducesrelated costs of health care and the amount of time lost for work or school due to illness; (4) asthe basis of the aquatic ecosystem, it helps sustain fisheries production; and (5) as an importantmode of transportation for people and goods, particularly in isolated areas during the wetseason. 8<strong>Cambodia</strong> has abundant water resources. It receives an estimated annual runoff of 475 billioncubic meters (BCM) from the Mekong system, which drains over 85 percent of the country.However, rainfall is concentrated within the six-month wet season, and there is very littlereservoir storage to capture and regulate wet-season runoff. During the six dry months, evapotranspirationfar exceeds rainfall and river levels drop significantly, resulting in limited availablesurface water resources outside of the Mekong River mainstream and Tonle Sap. Floods are anannual occurrence and are virtually unmanaged, except for a dike that protects Phnom Penh. Thefloods benefit the plain by replenishing soil nutrients and moisture and dispersing fish forspawning. However, they also damage infrastructure, crops, and personal property as well ascause costly restrictions to economic and other activities. Groundwater resources are estimated to8 World Bank, <strong>Cambodia</strong> Rural Sector Strategy Note: Towards a Strategy for Rural Growth and Poverty Reduction,Report No. 32784-KH (Washington DC: World Bank, 2005).90